Schroders’ May 2025 Equity Lens report highlights a strong rebound in global equities, particularly in Europe, which outperformed the U.S. by 22% year-to-date—the third-best start in over 50 years. Despite sharp market corrections earlier in the year, historical data suggests such declines are common and often followed by recoveries. The report also notes that while Europe’s valuation discount to the U.S. has narrowed, Japanese equities remain notably undervalued.